Latest Keoghs Insight

Fourteenth Edition of the Judicial College’s Guidelines for the Assessment of General Damages in Personal Injury Cases

Client Alerts||15/09/2017

Personal Injury Discount Rate

Client Alerts||08/09/2017

Limitation (Childhood Abuse) (Scotland) Act 2017 to come into force in October 2017

Client Alerts||23/08/2017

Costs budget exaggeration is misconduct

Client Alerts||17/08/2017

Blackmore v Department for Communities and Local Government 2017 EWCA Civ 1136

Client Alerts||04/08/2017

Lord Justice Jackson's review into Fixed Recoverable Costs (FRC)

Client Alerts||01/08/2017

Sentencing guidelines: Reduction in sentence for a guilty plea – update

Client Alerts||27/07/2017

Grant v Secretary of State for Transport: Guidance on Mesothelioma quantum

Client Alerts||06/07/2017

Automated and Electric Vehicles Bill

News And Events||20/10/2017

Keoghs IT team recognised in prestigious awards

News And Events||19/10/2017

Disputed causation leaves claimants paying the price

News And Events||17/10/2017

Keoghs announce 20 promotions and four new appointments

News And Events||31/08/2017

Ex-wife’s tip-off uncovers case of stolen identity leading to award of exemplary damages

News And Events||02/08/2017

Keoghs research warns of large rise in opportunistic insurance fraud

News And Events||17/07/2017

Keoghs launches 2017 apprenticeship programme

News And Events||09/06/2017

Scotland team expands at Keoghs one month after Glasgow office unveiled

News And Events||01/06/2017

Keoghs Launches Online Ogden Multiplier Calculator


A new way of life? Magill v Panel Systems (DB Limited)


Driver disqualification and the case for exceptional hardship


Health and Safety Executive FFI invoices – new panel, same challenges


The Future of Motor Fraud - the end of the road for cash for crash?


Cyclist conviction lays bare antiquated legislation


Keoghs enforcements team celebrates landmark year with some dramatic case highlights


Recent figures illustrate real impact of health and safety sentencing guidelines


Credit Hire Aware 12


Costs Aware Issue 3


Property Aware 5


Credit Hire Aware 11


Fraud Aware 5


Costs Aware 2


Disease Aware 8


Credit Hire Aware 10


Keoghs Insight

We keep you up-to-date on emerging market issues and their impact on the insurance sector, through a variety of publications, events and our leading market initiatives.



Keoghs research warns of large rise in opportunistic insurance fraud

News And Events||17/07/2017

Leading defendant law firm, Keoghs, is warning the insurance industry of a huge rise in opportunistic fraud. Recent research based on data collected by the firm’s intelligence unit shows a substantial increase in the proportion of opportunistic claims pursued in 2016, almost doubling from 21% in 2014 to 41% last year.

Worrying trend

This upsurge reinforces the notion that the types of fraudulent activity being initiated by professional enablers in the motor insurance sector is undergoing rapid change. The trend is likely to continue apace with the new Civil Liability Bill promising to crack down on fraudulent whiplash claims.

Director of Counter-Fraud Strategy, James Heath, believes the figures revealed in Keoghs’ research provide a clear indication of the direction insurance fraud is taking, saying;

“Keoghs has been warning of this trend for some time, however with the percentage of opportunistic claims recorded by Keoghs doubling in two years, we are now seeing the clearest indication yet that enablers are seeking to intensify alternative strategies whilst the whiplash reforms sit on the table.

“Opportunistic fraud refers to cases stemming from a genuine incident which are then fraudulently exaggerated; namely low speed impact, bogus passenger, exaggerated loss, and late notified claims. This conduct includes claims farming and claims layering, and represents a significant threat as a means to exploit insurers and innocent drivers.”

Peeling back the layers

Claims layering refers to the practice of boosting the value of a claim through the addition of peripheral heads of loss such as cognitive behavioural therapy and physiotherapy. This is often through entities with which the claims farmer or representative has a direct financial interest, and where such services are either exaggerated or not delivered at all.

Further to the overall claims numbers, Keoghs’ statistics reveal that instances of exaggeration through claims layering is also on the increase within fraud rings activity. Indeed, Keoghs intelligence suggests the involvement of claims layering in fraud rings has risen a staggering 82% since 2015.


Keoghs’ research also examined geographical hotspots for motor fraud in comparison to 2015’s figures. The most notable movement in the firm’s top 40 table saw Liverpool jump 12 places to fourth. The biggest climbers were Salford, featuring in the top 40 for the first time in 33rd, and Wigan, now sitting in 29th after a dramatic rise from 48th due to high volumes of low speed impact claims. Birmingham and Bradford remain first and second.

Commenting on the latest hotspot data, James related a lot of the movement in the table to the increase in opportunistic fraud, saying;

“Here we are also seeing the effects of this upwards trend. With low speed impact and bogus passenger claims doubling and sometimes tripling in certain areas over a two year period, it is no surprise that certain areas are seeing sharp spikes in motor fraud cases.”

Cash cow

Keoghs’ Director of Counter-Fraud Strategy went on to suggest;

“It is clear that almost any claim nationwide, whether arising from a genuine accident or an entirely fabricated event, is still seen by claims management companies and professional enablers as a cash cow to be layered with any and every head of loss in order to boost claim values, often illegitimately. If further evidence was needed to support additional reform in this area, these statistics clearly demonstrate that whiplash claims remain the target of widespread abuse. We will continue to support our insurer clients in weeding out fraud and abusive behaviour, and await sight of the Civil Liabilities Bill with interest.”

Top 10 Postcode District where suspicious claimants are located:

1)    Birmingham
2)    Bradford
3)    Leeds
4)    Liverpool
5)    Enfield
6)    Newham
7)    Manchester
8)    Harrow
9)    Bolton
10)  Redbridge

*All data analysed is based on the address location of claimants added to our database in 2016 as part of open investigations, or based on the address location of claimants where claims have settled.

Keoghs’ hotspot research is based on a detailed and targeted analysis focusing on postcode districts with a granular view of approximately 300 specific areas. Keoghs has also analysed data for 2015 and 2014 using the same criteria so that comparisons are made in a consistent fashion.